The Internal Revenue Service has just announced the limits on retirement plan contributions and benefits for 2018.
- The limit on 401(k) contributions will be $18,500, an increase from $18,000 per year. The catch-up contribution limit for those who are 50 and over remains at $6,000.
- The limit on contributions to defined contribution retirement plans has risen to $55,000 from $54,000 per year.
- The amount of compensation that can be considered for retirement plan contribution purposes has risen from $270,000 per year to $275,000.
- The maximum annual benefit in defined benefit plans has risen from $215,000 per year to $220,000.
- For IRA contributions, the limit remains at $5,500 per year, with a $1,000 catch-up permitted for those 50 and over.